From the point of view of the IMF family businesses are partly responsible for the increasing inequality in Germany. The head of the Foundation for family businesses, Brun-Hagen Hennerkes, finds that The opposite is true.
It makes sit up and take notice when the International monetary Fund (IMF) deals with the role of family businesses in Germany. Finally, one would think, also recognizes the monetary Fund that the global family companies in Germany to prosperity. Surprisingly, the IMF sees little light and much shadow. The Fund considers the strength of the major German family enterprises as the main reason for the unequal distribution of wealth. In the study, it is provocative, in Germany, the biggest assets lie in the hands of “industrial dynasties”. This statement is grossly incorrect. The social market economy proves the opposite.
It is unsettled that the monetary funds have been essential insights are lost. There are companies, especially the family, the unequal developments in a variety of ways to prevent it. The family business almost 60 percent of all jobs in Germany. Thus, they ensure that inequality is avoided by unemployment. The monetary Fund in the past several times occasion to wonder. As the Federal government brought in the years after the financial crisis, the state budget in order, had to defend Berlin in the criticism of the IMF. From Washington it was said that Germany should not overdo it with the Save. The success of our export business, the encounter in the German current account surplus reflected in the IMF on a lack of understanding. The current analysis of the IMF is one-sided, inadequate and faulty.
Brun-Hagen Hennerkes
A family business to counteract regional disparities
The monetary Fund is failing to recognise the importance of family businesses for the country. It is the family companies that keep everywhere in Germany, the job engine Running. They are rare in large Metropolitan areas, but in rural areas and thus counteract regional disparities. In spite of increasing globalization, they pay most of their taxes in the home country.
The judgment of the IMF, a few large family business holding, the threads in the German economy in the Hand, is nonsensical. It is precisely the diversity of family companies, which ensures our prosperity, and the us abroad to be envied. In Germany alone, there are 1300 secret world market leaders to niche markets around the world. The 500 largest family businesses, including well-known names such as the Black group, Oetker, Stihl and Karcher, counting have created in the past decade, more jobs in Germany than the anonymous Dax companies. While the TOP 500 family, the number of employees in companies increased in Germany by 23 percent, rose said Dax-listed corporations in free float, domestic employment by only four percent.
The IMF raised question of the concentration of Wealth must be considered in the historical context. The German family-owned companies are so successful, because they operate in the long term and in a sustainable manner. You aspire to pass the company on to the next Generation. In the course of time have arisen in this way, large, internationally active family business, and thus large fortune. But this is not a disadvantage, as the IMF believes, incorrectly, but this secures our competitiveness. Because these assets are productively tied up in the company.
Factor of stability even in times of crisis
For family businesses, it is typical that they have to invest profits back. Last year, late many years of the trump-in-chief Berthold Leibinger once said: “I was always of the opinion that the projected profits must first be available to the company.” According to this Maxim, most of the family companies. This means more investment and jobs. The strong substance of the family-owned company has helped demonstrably to survive times of crisis without mass dismissals. It would be negligent not to want to change that.
The economic policy advice given by the IMF of the policy, to convince in any way. The monetary Fund, recommends that you increase taxes on wealth and encourages, in particular, higher inheritance taxes. Here, the IMF completely ignores the fact that Germany has long since become a highly expensive country. Since the last corporate tax reform eleven years have passed. In the tax competition is always more. To demand In this Situation, higher inheritance taxes, is irresponsible. Since the inheritance tax reform in 2016, the Transfer of the business assets is connected to the next Generation with a considerable burden. The growing inheritance proves tax revenue. New loads would be poison for our country.
The analysis of the IMF overlooks the fact that Germany is performing in the income distribution well. States with high taxation and a high proportion of listed companies are not superior to us in any case. To measure the income inequality, then Germany is in a better state than the rest of the G-7 countries USA, UK, France, Italy, Japan and Canada. To alarmism, no occasion in any case.
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Company historyThe Coatinc Company Holding GmbH
Only this spring it became known: The Coatinc Company is the oldest family business in Germany. Economic historians have examined the appropriate documents of the company and confirmed in 1502 as the year of establishment. In the beginning it was only a forge in Siegen. The headquarters of the galvanizing has remained loyal until today.
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Company historyWilliam Prym Holding GmbH & co. KG
Prym, founded in 1530, was regarded until then as the oldest family business in Germany. Now we must settle for the company with the second place. While at the Beginning of the production of rolled products and wires have been prioritized, started in 1903, the production of sewing accessories and buttons. The company employs 3300 employees, and in 2018, around 382 million euros.
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Company historyWiegand-Glas GmbH
Wiegand-Glas was created in 1570 from a modest glass production plant in the Rhön. Although the manufacture of glass is, as ever, the focus of the company, in 1997 it was decided that the production of PET containers expand. Today, Wiegand glass, with its 1800 employees, and annual sales in 2018 of € 486 million is one of the Top three glass container manufacturers in Germany.
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Company historyBerenberg, Joh. Berenberg, Gossler & co. KG
Since the 16th century. Century companies in the banking business in Germany. Also, Berenberg Bank, founded in 1590 in Hamburg and the second-oldest Bank in the world, according to the Italian Monte dei Paschi di Siena. 1640 employees generated in the asset management, the Investment and Corporate Banking, 2018, with a turnover of 4.7 billion Euro.
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Company historyFriedr. Schwarze GmbH & co. KG
Already 1664 Black is mentioned as a grain distillery in a document. The distillery, which sells under the name Black and Simple, your goods, offers a diverse range of spirits brands. This helps the company to compete successfully in the spirits market. Schwarze und Schlichte has 100 employees and was able to achieve in 2018, around 47 million euros in sales.
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Company historyMerck KGaA
The 1668 in Darmstadt, Germany, as a pharmacy based company, Merck is the oldest pharmaceutical-chemical company in the world. For the confusion of the eponymous US group Merck & co., until 1917, part of the German company makes sometimes. Although the US company is much bigger, took up the German Arm of 2018, nearly 15 billion euros. Worldwide, Merck has 51.700 employees.
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Company historyLukas Meindl GmbH & co. KG
The company Meindl was born 1683, when Petrus Meindl opened one of the first Shoe-making in Kirchanschöring (Bavaria). Since then, successive generations continue to run the business successfully. With 200 employees and a production facility in hometown, the family-owned company offers its selection of Hiking shoes, and leather fashion in Germany.
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Company historyHarry Brot GmbH
A simple bakery in Hamburg in 1688, the origin of the large bakery Harry, whose tender may be purchased at bread across the Board in East -, West – and North Germany. Over the years, has diligently invested in the modernization of the plant. The bakery produces at nine locations, has 4375 employee and came in 2018, with a turnover of around one billion euros.
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Company historyVilleroy & Boch AG
The ceramics company Villeroy & Boch was founded in 1748 in Lorraine village from the iron founder François Boch. From a company that originally produced exclusively in porcelain dishes, was in the course of 270 years, one of the leading companies in the areas of bath, Wellness and tableware. It has today 7500 employees worldwide, and in 2018 achieved a turnover of 835 million euros.
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Company historyS. Siedle & Söhne OHG
The family-owned company Siedle, which is today, for its buildings of communication technology, was founded in 1750-a foundry. In 1887, the company, the telephony turned, resulting in the beginning of the 20th century. Century, the specialization in building of communication was created. The former foundry generated in 2018, with 550 employees and a turnover of 88 million Euro.
Prof. Dr. Dr. h. C. mult. Brun-Hagen Hennerkes, Chairman of the Board of the Foundation for family businesses.
This article first appeared in the Frankfurter Allgemeine Zeitung (FAZ) on 15.07.2019